The Korea Times

Korea's Q1 GDP grows 1.7%, nearly double forecast on surging chip exports

Despite risks stemming from the Middle East war, Korea's economy grew at its fastest pace in more than five years in the first quarter, lifted by a semiconductor export boom, central bank data showed Thursday. According to preliminary data from the Bank of Korea (BOK), real gross domestic product (GDP) rose 1.7 percent in the January–March period from the previous quarter, nearly double the bank's forecast of 0.9 percent. It marked the strongest quarterly expansion since the third quarter of 2020 when the economy expanded 2.2 percent. The economy shrank 0.2 percent in the first quarter of 2025, then rebounded with growth of 0.7 percent and 1.3 percent in the next two quarters, before slipping back into a 0.2 percent decline in the fourth quarter amid weak facilities investment and a slowdown in construction. Manufacturing and exports — particularly semiconductors — accounted for the bulk of this year's first-quarter growth. Facilities investment, including spending on chip equipment, jumped 4.8 percent, while private consumption rose 0.5 percent and government spending edged up 0.1

Apr 23, 2026By Lee Hyo-jin

Korea's Q1 GDP grows 1.7%, nearly double forecast on surging chip exports

Economy

Finance attache up for state honor for clearing US sanctions risk on Russian naphtha imports

A finance ministry official has been recommended for a government award after securing U.S. assurances that allowed a recent Russian petrochemical shipment to proceed without triggering secondary sanctions, officials said Tuesday. According to the Ministry of Economy and Finance, Choi Young-geon, a finance attache at the Korean Embassy in Washington, has been nominated for an internal award. Choi played a key role in securing U.S. assurances that enabled LG Chem to import 27,000 tons of Russian naphtha in March, as Korea turned to alternative supplies following disruptions to shipments through the Strait of Hormuz amid the Iran war. The U.S. Treasury's Office of Foreign Assets Control generally prohibits transactions involving Russian oil, but issued a 30-day waiver on March 12 allowing limited purchases of Russian oil and petroleum products amid supply concerns. LG Chem subsequently signed a contract to import the naphtha shipment. However, uncertainties remained over payment methods due to the risk of potential secondary sanctions. Intermediary banks handling dollar transactions refused

Apr 21, 2026By Lee Hyo-jin

Finance attache up for state honor for clearing US sanctions risk on Russian naphtha imports

Banking & Finance

Hana Financial, FSS join hands to nurture next-gen finance talent

Hana Financial Group launched a youth training program aimed at developing future finance talent, the group said Tuesday. The program, designed to provide hands-on training opportunities for young people seeking careers in finance, is also backed by the Financial Supervisory Service (FSS), Amazon Web Services and Microsoft. The launch event, which took place at the group's headquarters in Seoul, Monday, included a competition session to select participants for a three-month training course running through July. Among the attendees were Hana Financial Group Chairman Ham Young-joo, FSS Senior Deputy Gov. Kim Seong-wook, British Ambassador to Korea Colin Crooks, Future for Youth Foundation Chairman Lee Hoon-kyu and Um Jong-hwan, head of environmental, social and governance (ESG) at SK Telecom. Twenty teams of university students took part in the competition, presenting financial service ideas using technologies such as artificial intelligence (AI), blockchain and cloud data. "This project is meaningful in that it supports youth employment while helping young people build capabilities in area

Apr 21, 2026By Lee Hyo-jin

Hana Financial, FSS join hands to nurture next-gen finance talent

Banking & Finance

Woori Bank CEO joins president’s state visit to India

Woori Bank CEO Jung Jin-wan attended the Korea-India Business Forum in New Delhi, held on the sidelines of President Lee Jae Myung's state visit to the South Asian nation, the bank said Tuesday. At the forum held on the previous day, Jung met with Indian business leaders to discuss market trends and explore opportunities to expand the bank's presence in the world's most populous country. Around 600 business executives and government officials from both countries attended to discuss potential areas of cooperation. Jung was the only head of a major Korean commercial bank included in the president's business delegation during the three-day trip. Woori Bank currently operates five branches across key Indian cities — Chennai, Mumbai, Gurugram, Pune and Ahmedabad — and plans to incorporate insights from the CEO's latest visit into its future strategy. As part of his itinerary, Jung also visited Akshya Pratisthan, a school in Gurugram, where he delivered donations for underprivileged children. The bank said it is expanding its social contribution efforts in India alongside its business opera

Apr 21, 2026By Lee Hyo-jin

Woori Bank CEO joins president’s state visit to India

Banking & Finance

Banks turn to rehiring retirees amid workforce restructuring

After retiring in 2024 from a three-decade career at Woori Bank, a 55-year old man surnamed Lee is back at the bank on contract as a specialist handling post-loan management. He was rehired in January to monitor loans and manage credit risk after disbursement. "I applied after hearing about the rehiring program because I wanted to put my experience to use in my second career," Lee said. "I worked my way up to branch manager, so I can share that experience with younger staff. I'm also learning a lot from them in this fast-changing banking environment." Korea's major banks are increasingly rehiring retired employees like Lee as they close branches and cut staff, tapping experienced workers to fill expertise gaps on the ground. According to industry data, released Monday, the five major banks — KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank — have rehired 5,458 retired employees on contract between 2021 and February this year, averaging about 1,000 a year. About 290 were rehired in the first two months of this year alone. These rehired bankers are increasingly

Apr 21, 2026By Lee Hyo-jin

Banks turn to rehiring retirees amid workforce restructuring

Banking & Finance

Banks expand services for foreign customers as migrant numbers rise

Korean banks are moving to better serve foreign residents as the migrant population grows, according to industry officials Monday. The number of foreign customers at five major banks — KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank — reached a combined 6.97 million as of March. Foreign customers now account for about 5 percent of total clients, reaching 6.91 million in 2025, up from 6.64 million in 2024 and 6.36 million in 2023. The trend mirrors the increase in the number of foreign residents in the country. According to the Ministry of Justice, the foreign population reached about 2.78 million at the end of 2025, a record high. Long-term residents surpassed 2 million. According to industry officials, foreign customers tend to open accounts with multiple lenders to access a wider range of services. Lenders are rolling out tailored services to capture this growing market. Hana Bank operates 17 branches in areas with large foreign populations that provide dedicated services. It also runs a mobile app, Hana EZ, offering multilingual, non-face-to-face services d

Apr 20, 2026By Lee Hyo-jin

Banks expand services for foreign customers as migrant numbers rise

Economy

Rising prices push consumers toward at-home leisure

An avid camper surnamed Cho, 32, who lives in Bucheon, Gyeonggi Province, has cut back on camping trips this spring despite the favorable weather. "I used to go camping with friends in Gangwon or Chungcheong provinces almost every other weekend," she said. "But fuel prices have risen so much that even driving out there feels like a burden, so I'm trying to avoid weekend road trips." Cho added that she has recently put some of her camping gear up for sale on secondhand marketplaces. Some people are canceling their travel plans for May, a month with several public holidays, and choosing to stay home instead. "I was thinking of traveling to Jeju Island, but I heard airfares are expected to jump in May. With prices so unpredictable, I'll probably just stay home and find things to do indoors," said an office worker surnamed Jeong, 27. Spring is typically a peak season for outdoor activities, but more people are now turning to at-home leisure, industry data showed Monday, as soaring oil and consumer prices driven by conflict in the Middle East are beginning to reshape consumers' behavior. Accord

Apr 14, 2026By Lee Hyo-jin

Rising prices push consumers toward at-home leisure

Cryptocurrency

Circle CEO rules out won-based stablecoin issuance, instead seeks local partnerships

Circle CEO Jeremy Allaire said Monday the U.S. stablecoin firm has no plans to issue a Korean won-based stablecoin, instead signaling a strategy focused on supporting local banks and fintech firms as they develop their own digital currencies. "I don't believe Circle would issue a Korean won stablecoin," Allaire said during a press conference in Seoul, when asked about the possibility, noting that such efforts would likely be led by a consortium of Korean banks, fintechs and digital asset companies. "However, we have built some of the most important and successful technology in the world for stablecoin operations that can be used to make them work across these blockchain networks," he added. "So we may find ways to partner with Korean won issuers, and to be supportive of these emerging consortiums as they look to build Korean digital currencies." Circle is the issuer of USDC, one of the world's largest stablecoins, which is pegged to the U.S. dollar. Allaire's visit to Seoul comes as the New York-based firm steps up efforts to expand partnerships in Korea. The CEO said the company is open t

Apr 13, 2026By Lee Hyo-jin

Circle CEO rules out won-based stablecoin issuance, instead seeks local partnerships

Global Community

Foreign residents partly eligible for Korea's fuel relief program

Some foreign residents in Korea will be eligible for government cash handouts, ranging from 100,000 won ($67) to 600,000 won, to be distributed later this month under a supplementary budget aimed at offsetting high fuel costs amid the prolonged Middle East conflict, the Ministry of the Interior and Safety said Sunday. The ministry said non-Korean nationals are in principle excluded from the subsidy program, but exceptions will be made for those deemed to have "close ties" to Korean citizens. Foreign nationals are eligible if they are listed on a resident registration record alongside at least one Korean citizen and are enrolled in the national health insurance system, either as subscribers or dependents. Entirely foreign households may also qualify if they include permanent residents (F-5 visa holders), marriage migrants (F-6 visa holders) or refugees (F-2-4 visa holders), as long as those members are enrolled in the national health insurance system or are recipients of state medical aid. Korean nationals residing overseas will be eligible if they returned to the country between March 30

Apr 12, 2026By Lee Hyo-jin

Foreign residents partly eligible for Korea's fuel relief program

Policy

Oil price cap freeze raises concerns over market distortions, fiscal strain

The government’s decision to keep the third-round oil price cap unchanged from the previous level is raising concerns over potential market distortions and mounting fiscal strain amid ongoing volatility in global oil prices linked to the Middle East crisis, analysts said Sunday. By capping prices, the policy weakens the link between domestic fuel prices and global benchmarks, adding pressure on refiners’ margins, they warned. The government introduced the fuel price cap system on March 13 to curb a surge in domestic oil prices. It adjusts ceilings on fuel prices supplied by refiners to gas stations and distributors biweekly, based on movements in global oil prices. The Ministry of Trade, Industry and Resources maintained the third round of price ceilings on gasoline, diesel and kerosene, leaving them unchanged levels for the next two weeks, effective from Friday, aiming to ease the burden of price volatility for consumers. Under the measure, the maximum prices were kept at 1,934 won ($1.30) per liter for gasoline, 1,923 won for diesel and 1,530 won for kerosene. The latest decision ra

Apr 12, 2026By Lee Hyo-jin

Lee Hyo-jin

Read more

Korea's Q1 GDP grows 1.7%, nearly double forecast on surging chip exports

Finance attache up for state honor for clearing US sanctions risk on Russian naphtha imports

Hana Financial, FSS join hands to nurture next-gen finance talent

Woori Bank CEO joins president’s state visit to India

Banks turn to rehiring retirees amid workforce restructuring

Banks expand services for foreign customers as migrant numbers rise

Rising prices push consumers toward at-home leisure

Circle CEO rules out won-based stablecoin issuance, instead seeks local partnerships

Foreign residents partly eligible for Korea's fuel relief program

Oil price cap freeze raises concerns over market distortions, fiscal strain

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